Stablecoin issuer Tether, with a market capitalization exceeding $120 billion, is actively collaborating with U.S. congressional representatives to shape forthcoming stablecoin regulations. The company has been in discussions with Representatives Bryan Steil and French Hill regarding the STABLE Act, introduced on February 6, 2025. Tether’s CEO, Paolo Ardoino, emphasized the company’s commitment to adapting to U.S. legislation, stating, “We are not going to just throw in the towel and let Tether die just for the sake of not adapting to US legislation.”
In addition to the STABLE Act, Tether seeks to provide input on two other stablecoin bills introduced by different lawmakers. Compliance with U.S. regulations would necessitate Tether to conduct monthly reserve audits through a U.S.-based accounting firm and ensure one-to-one asset collateralization for its tokenized fiat equivalents.
This engagement occurs amidst heightened scrutiny of the cryptocurrency sector by U.S. regulatory bodies. Notably, Howard Lutnick, chairman of Cantor Fitzgerald and a significant figure in Tether’s operations, has been nominated for the position of Secretary of Commerce. Lutnick’s deep involvement in the cryptocurrency industry, particularly with Tether, raises concerns about potential conflicts of interest due to the significant influence the Commerce Department has on this sector.
Furthermore, the cryptocurrency industry has significantly increased its political engagement, with companies spending approximately $119 million on federal election campaigns during the 2024 election cycle. This surge in political contributions aims to influence legislation favorable to the crypto sector, including laws regulating stablecoins and establishing a new regulatory framework for crypto tokens.
Tether’s proactive approach in engaging with lawmakers underscores its intent to influence the regulatory landscape and ensure its operations align with forthcoming U.S. laws.
